Possibilities abound

68 Pages·2016·2.84 MB·English

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6-4 BUSINESS IN MAJOR PROJECTS
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N° AGRICULTURE
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01 ENERGY
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uary MINING
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6/ Ja CAMEROON INDUSTRY
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er 2 SERVICES
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Sending money to Cameroon
Possibilities abound !
Interview with the StopBlaBlaCam
economist, Babissakana: 9 rumours and popular
Where is the Cameroonian beliefs: What is true? What
economy heading to? is false?
FREE - CANNOT BE SOLD
BUSINESSIN
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Yasmine Bahri-Domon
Pros of financial messaging
The money transfer market is currently experiencing
a major boom which no financial operator wishes
to miss as it brings about many opportunities and
benefits. These operators mostly want to win market
shares from traditional money transfer companies.  
Looking at the size of money transfers, Cameroon leads the
ranking with more than CFA150 billion, according to the
World Bank, sent by its Diaspora. The dynamism in transfers is
both in-and-out the country as mobile operators and start-
ups, inside Cameroon and in the rest of the world, are trans-
forming the money transfer sector by consistently innovating
and developing new mobile money services. Let us highlight
that the sector’s growth mainly lies in that of mobile phones’
penetration rate.
Besides the advantages it provides the local market, the
growth of the money transfer market through digital solutions
also paves the way for a better business environment and
will help close the social gap, regardless of local governance
or economic challenges. To reduce poverty in the country, it
instead relies on the solidarity and family values of Africans,
but also on the desire of Diaspora to insure the wellbeing of
their relatives at home. These factors are the main keys to the
growth of the sector.
With its competitive tariffs, the money transfer sector is quite
profitable for its customers. However, there is still room for
improvement in regards to the flexibility of transfers and
innovation. Only these would spur the market’s rapid growth
in Cameroon.
You might have noticed some special advertisement in this
edition, pages dedicated to our stories from Stopblablacam.
com, which is an extension of our style of news, and which
pushes you to review widely, yet wrong, accepted ideas, rum-
ors and such, by providing you exact news and thus making
you a truth provider. This website is at your service as well…
N° 46-47 / December 2016-January 2017 BUSINESS IN CAMEROON
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CONTENTS
FOCUS INTERVIEW
18 • B abissakana:
“Cameroon
immediately needs
to achieve a minimal
capacity of 4000 to
5000 MW by 2020”
LEADER OF THE MONTH
66 • C ameroonian Janvier
Litse appointed
Director General of
AfDB’s West Africa
08 • M oney transfer: it pays in cash! regional office
09 • O ver FCfa 150 billion transferred in Cameroon
BUSINESS IN CAMEROON
by the diaspora in 2015
10 • W ith Squares Union, “transfer money to Publisher
Stratline Limited
Cameroon at a single fee of USD 5.99”
Publication Director
11 • F or national operators, the competition is Yasmine BAHRI-DOMON
harder than ever Contributors
Brice R. MBODIAM, Mamadou CISSÉ.
11 • A frimarket innovates with its “Cash to Goods”
Operator
transfers
Médiamania Sàrl
www.mediamania.pro
12 • C OBAC denounces over-invoicing in money
Design : Jérémie FLAUX, Web : Christian ZANARDI,
transfer commissions in the microfinance sector Translation : Schadrac AKINOCHO, Bérénice BAH
12 • O ver 220 illegal operators in the courier and Advertisement
[email protected]
money transfer sector In Cameroon
Albert MASSIMB, [email protected]
13 • C atherine Wines: “the Cameroonian diaspora Tel : [phone]
makes thousands of money transfers every
Printing
month through WorldRemit” Rotimpres, Aiguaviva, Espagne
17 • F rom Cameroon, Attijariwafa want to conquer Circulation
Albert MASSIMB, [email protected]
the Central African money transfer market Tel : [phone] ou 00 237 77 75 13 98
17 • B anque Atlantique makes money transfer
Free – cannot be sold
international through its automatic teller
www.businessincameroon.com - [email protected]
machines
BUSINESS IN CAMEROON N° 46-47 / December 2016-January 2017
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PUBLIC
MANAGEMENT FINANCE AGRIBUSINESS
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INFRASTRUCTURE ENERGY MINING
P 40 P 41-45 P 46-47
INDUSTRY TRANSPORTATION ITC & TELECOM
P 48-49 P 50 P 51-53
SERVICES
P 54-55 www.stopblablacam.com P 56-65
Rumours, preconceived notions, clichés,
superstitions, urban legend:
What is real? What is fake?
N° 46-47 / December 2016-January 2017 BUSINESS IN CAMEROON
6
THE CAST
LAURENT
SERGE
ETOUNDI NGOA
The Cameroonian government, via the Ministry of SME,
Social Economy and Arts, officially launched on 20
October 2016, a virtual gallery. This initiative is meant to
capitalise on the opportunities offered by internet, to pro-
mote Cameroonian arts and crafts throughout the world.
According to Minister Laurent Serge Etoundi Ngoa, the
products on exhibition in this digital gallery will have to be
exhibited beforehand in the art centres spread out in the
10 regions of the country.
Then it will be up to the experts in said centres to select the
most deserving products and make them available to po-
tential buyers on the web. In a first stage, we learned, only
arts centres located in Yaoundé and Limbe will have access
to this gallery. Other centres will be gradually connected.
LOUIS PAUL
MOTAZÉ
The tractor assembly line of Indian brand Sonalika, set up
in the town of Ebolowa, South Cameroon regional capital,
is already in operation. It produces five tractors per day,
we learned during a recent site visit by the Cameroonian
Minister of Economy, Louis Paul Motazé.
This government member even recommended that the trac-
tors manufactured in this factory be quickly tested in ex-
perimental fields, for eventual faults to be corrected before
their sale on the local and sub-regional market. This assem-
bly unit is financed by the Cameroonian government, who
thus plans to promote a more mechanised local agriculture.
BUSINESS IN CAMEROON N° 46-47 / December 2016-January 2017
7
LUC MAGLOIRE HENRI EYÉBÉ
MBARGA AYISSI
ATANGANA
The Cameroonian Minister of Commerce organised, from A delegation of four Cameroonian government mem-
19 to 23 October 2016 in Moscow, the very first edition of bers, headed by the Minister of Agriculture and Rural
the Cameroonian Economic Days in Russia. This initiative, Development, Henri Eyebé Ayissi, just visited the town of
as highlighted by this Ministry, is to enable local economic Maroua, the capital of the Extreme-North region, to rally
operators to win new markets. the youth in this area of Cameroon around agricultural
During the Muscovite stay of the Cameroonian delegation, and livestock activities.
Minister Mbarga Atangana, who addressed a group gath-
ering about a hundred Russian economic operators and During this meeting, the government once again presented
other foreign diplomats, seized the moment to present the the range of public projects set up to promote the develop-
opportunities available in Cameroon. On this subject, he ment of agricultural and breeding activities in Cameroon.
recalled the strategic position of the country, located at the “Instead of waiting for the youth to come and seek informa-
crossroads of a 300 million consumers market (10 CEEAC tion from our units, we have decided to take the first step to-
countries and Nigeria). wards them and spread the good news on all existing support
mechanisms”, indicated Minister Eyébé Ayissi.
ERNEST WILLIAM
GBWABOUBOU AURÉLIEN ETÉKI
MBOUMOUA
The Cameroonian Minister of Mining, Industry and The Cameroonian diplomat William Aurélien Etéki
Technological Development, Ernest Gbwaboubou, just Mboumoua, who passed away on 26 October 2016 in
signed with eight local companies, agreements granting Yaoundé, the country’s capital, followed an illness at the
them access to the advantages provided in the 2013 Act on age of 83 years, was buried on Saturday 26 November 2016
promoting private investment in Cameroon, with various in his village located in the Littoral region of Cameroon.
exemptions of 5 to 10 years for beneficiaries. The wake for this senior civil servant, who was once
Sponsoring projects in sectors as different as chemicals Minister of Foreign Affairs of his country and General
manufacture, cosmetic industry, food industry, household Secretary of the Organisation of African Unity (OAU) ,
soap or drink production, etc., these companies will official- which later became African Union (AU), was held on 24
ly create 1,220 jobs, for global investments of FCfa 32 billion, November 2016 in Yaoundé, with several members of the
we officially learned. government in attendance. Since his retirement from the
Civil Service, Mr Etéki Mboumoua had been until his de-
mise in October, President of the Cameroonian Red Cross.
N° 46-47 / December 2016-January 2017 BUSINESS IN CAMEROON
8 PITCHED BATTLE ON THE MONEY TRANSFER MARKET
Money transfer: it pays
in cash!
For some years now, the money domestic money transfer flows skirt this activity.
transfer market in Cameroon has had on a daily basis in the hundreds of Upon closer observation, this rush
a complete overhaul. To the point million FCfa? is unfortunately coupled with rather
where the leadership of well-known In other words, which money reprehensible practices. This is
multinationals in this activity sector transfer company in the world the case of illicit operators, more
could be toppled at any moment, would not be interested in a coun- inclined to profit from this growing
if these operators do not get them- try described by the 2013 United activity than to respect the dedicated
selves acquainted with the new deal. Nations Conference on Trade and legal framework; or this accumu-
This mutation has been imposed by Development (UNCTAD) Report lation of wealth by operators, who
the increasing number of start-ups as 3rd in Africa (after Senegal and over-invoice their services without
entering the market with myriads of Morocco), in terms of destination consideration for the rules issued on
innovations, competitive pricing and countries for funds transferred by the subject by COBAC.
more flexibility in their operations; migrants living in France. This meant going completely off
and even by local operators who Well, the dynamism of the track for some operators, who
discovered fertile ground for their Cameroonian diaspora in terms of fortunately have not yet succeed-
business. money transfer, as well as the in- ed in leaving their mark on the
But, how could it not be, in a country crease in domestic transfers, proven Cameroonian money transfer market
where the volume of money transfers by the record crowds observed every which has been thriving for some
from the diaspora in 2015 doubled day in branches; are the main factors years now.
compared to that of 2010, where explaining the rush of operators to BRM
BUSINESS IN CAMEROON N° 46-47 / December 2016-January 2017
PITCHED BATTLE ON THE MONEY TRANSFER MARKET 9
Over FCfa 150 billion transferred in
Cameroon by the diaspora in 2015
More and more
throughout the years,
the money sent back
to their country by
Cameroonians living
abroad has played an
important role in the
economy of the country.
Funds transferred by the members of
the Cameroonian diaspora to their
country of origin peaked at USD 244
million in 2015, about slightly over
FCfa 150 billion, as revealed by the
World Bank’s statistics. According to the international NGO PlaNet Finance, the volumes of money transfers made by
the entire African diaspora could be higher than the current level, provided that the costs of
Quick calculation reveals that this
transactions decrease.
figure represents 10% of the public
investment budget (BIP) of the coun-
try for 2016 (FCfa 1,500 billion), close money transfers made by the entire This 36-month long initiative, we
to 20% of the funding necessary to African diaspora could be higher learned, is meant to reduce the price
implement the three-year emergency than the current level, provided that of money transfers for the African
plan of the Cameroonian govern- the costs of transactions decrease. diaspora, when they are made via
ment (FCfa 900 billion), or more than This NGO thus decided to launch in the public postal service network.
40% of the financing requested for October 2013, the Initiative to im- The ultimate goal of this project, in
the construction of the Natchigal prove money transfers from migrants which the Cameroon Postal Services
dam (FCfa 400 billion), with a capac- to Africa with the support of the (Campost) is taking part, is to cut
ity of 400 MW, under development in Universal Postal Union (UPU), with these costs by 30% and, consequent-
Cameroon. financing from the European Union. ly, multiply the volume of transfers.
Per the National Technical Payment
Balance Committee, a body working
AN INCREASE OF FCFA 100 BILLION IN 4 YEARS
under the supervision of the Ministry
of Finance, the CEMAC zone was
A global envelope of FCfa 150 bil- the multiplication of less expensive
up until 2013, the main point of
lion transferred by the members of informal transfer channels.
origin for these transfers from the
the diaspora to their country of or- Indeed, per the statistics of the Na-
Cameroon diaspora with 38% of
igin in only a year, this is extremely tional Technical Balance Payment
transfers registered that year, against
important. Especially for a develop- Committee, in 2013, the Cameroo-
27% for France, 15% for the United
ing country like Cameroon. But fur- nian diaspora sent a total of FCfa
States and 20% for the rest of the
ther analysis of the different statistics 218.7 billion in cash transfers to
world. These funds, we learned, were
rather reveals that the volume of Cameroon, against FCfa 181 billion
mainly used to meet the basic needs
funds transferred by Cameroonians in 2009. Which represents a substan-
of the families who stayed back in the
living abroad in 2015 is actually on tial increase of more than FCfa 100
country.
a downward trend, compared to the billion over a 4-year period.
According to the international NGO
previous years. Probably because of
PlaNet Finance, the volumes of
N° 46-47 / December 2016-January 2017 BUSINESS IN CAMEROON
10 PITCHED BATTLE ON THE MONEY TRANSFER MARKET
With Squares Union, “transfer
money to Cameroon at a single fee
of USD 5.99”
Interview with Isabelle Quintard, one of the
managers of this company based in Canada, but
whose target market is Cameroon.
We are present in Canada and a financial service, a payment for our
in Cameroon, in several cities activity.
such as Douala, Yaoundé,
Bafoussam, Bamenda, BC: What do you especially offer
Bagangté, Dschang and compared to the big names in
Kribi. To withdraw funds in the money transfer market who
Cameroon, we have several are already operating on the
withdrawal points. We have Cameroonian market?
many microfinance struc- IQ: We distinguish ourselves from our
tures and other partner competitors through pricing. First,
cooperatives. the cost of a transfer is of 5.99 dollars
These are for example FODEC, (approximately FCfa 3,500) for all
FIGEC, and soon CCA. We amounts from 0 to 1,000 dollars. We
then want to open new with- therefore have a single fee, whereas
drawal points in Cameroon, to our competitors have variable prices,
cover the entire country. We depending on the amount of the
will also open a branch in Côte transfer.
d’Ivoire soon and later on we Then, our platform is simple to use,
would like to move to Senegal fast and secured. So, you transfer
and Togo. We thus plan to money 24/7 everywhere from your
cover Africa as a whole and in laptop, tablet or smartphone. You do
the near future, Europe. not need to go anywhere.
BC: You are based in BC: What is, today, the weight of
Canada. What reasons your activities in Cameroon in the
Isabelle Quintard: “Squares Union is a start-up specialised
in financial transactions, remote invoice payment and pushed Squares Union global portfolio of your start-up?
electronic topup.” to move its activities to IQ: The weight of our activities
Cameroon? in Cameroon in our portfolio is
IQ: This is because the three important. Because, as I previously
Business in Cameroon: What is co-founders of the start-up told you, we are for the moment only
Squares Union? are originally from Cameroon. They operating in Canada and Cameroon.
Isabelle Quintard: Squares Union therefore had to face the problem To date, our activity is growing. But,
is a start-up specialised in finan- of the high cost of money transfer we would like to further develop
cial transactions, remote invoice operations. our visibility in Cameroon, to better
payment (hospitals, groceries, meet the needs of households. Also
pharmacy, etc.) and electronic top- BC: In practical terms, what in Canada, we are trying to work as
up. We have authorisations from the services are you offering to your much as possible with Cameroon
financial market to carry out our partners in Cameroon? associations.
activities. We have thus developed an IQ: We have some agreements with
internet platform accessible from a our partners, to enable them open Interview by BRM
laptop, smartphone and tablet. withdrawal points. This is therefore
BUSINESS IN CAMEROON N° 46-47 / December 2016-January 2017